MS HB886

Extends the repeal date of reduced severance tax rates for oil and natural gas produced from horizontally drilled wells and horizontally drilled recompletion wells from July 1, 2018 to July 1, 2021.

Maintains the temporarily reduced tax rate of 1.3% on oil and natural gas from eligible horizontally drilled wells for 30 months from first sale or until well cost payout, whichever occurs first, then returns to standard 6% rate.

Wells beginning production before July 1, 2021 continue to qualify for the reduced rate for their full 30-month period even after the general repeal takes effect.

Requires operators to apply to the State Oil and Gas Board for the reduced rate and submit semiannual payout status affidavits signed by a company representative.

Effective date is July 1, 2018.